P5-9A.
At the beginning of the current season on April 1, the ledger of Fairway Pro Shop showed Cash $2,500; Merchandise Inventory $3,500; and Common Stock $6,000. These transactions occurred during April 2007.
Apr. 5 Purchased golf bags, clubs, and balls on account from Kokott Co. $1,800, FOB shipping point, terms 3/10, n/60.
7 Paid freight on Kokott Co. purchases $80.
9 Received credit from Kokott Co. for merchandise returned $200.
10 Sold merchandise on account to members $910, terms n/30.
12 Purchased golf shoes, sweaters, and other accessories on account from Eagle Sportswear $730, terms 1/10, n/30.
14 Paid Kokott Co. in full.
17 Received credit from Eagle Sportswear for merchandise returned $30.
20 Made sales on account to members $840, terms n/30.
21 Paid Eagle Sportswear in full.
27 Granted credit to members for clothing that did not fit properly $60.
30 Received payments on account from members $1,100.
The chart of accounts for the pro shop includes Cash, Accounts Receivable, Merchandise Inventory, Accounts Payable, Common Stock, Sales, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-in.
Hint: Journalize, post, and prepare trial balance and partial income statement using periodic approach. (SO 5 and SO 7)
Instructions
a.
Journalize the April transactions using a periodic inventory system.
b.
Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions.
c.
Prepare a trial balance on April 30, 2007.
I just need help with the journal part
Dr cr
5 merchandise 1800
Ap 1800
7. Freight 80
Cash 80
9. returns 200
Merchandise 200
10 AR 910
Merchandise 910
12 Merchandise 730
AP 730
14 AP 1800
Cash 1800
17 purchase returns 30
Merchandise 30
20 AR 840
Sales 840
21 AP 730
Cash 730
27 allowances 60
Cash 60
30 cash 1100
AR 1100
When I try to balance it, I get the following
Cash 930
Ar 650
Merchandise 4890
Purchase returns 230
Sales returns allowances 60
Purchases 1530
Freight 80
total 8370
AP 0
CS 6000
Sales 840
total 6840
